As many of you know already, I am continuously trying to find ways so my wife can stay at home and take care of our kids. I called it the project $1,500 since we need to increase our net monthly cash flow by $1,500 in order to achieve this goal. I recently wrote about my failure in this project as I wanted to make it happen within one year. However, I was still able to increase our cash flow significantly.
We are now discussing the possibility of having a daycare at home. My wife could take care of our two children and get four more. This solution was brought up by several readers since the very beginning of this project. Back then, it was not possible because it was not creating enough income. Since I was able to increase my revenue, start a company and decrease our expenses, we can now reconsider this option.
This will be a two part posts where I will write down the pros and cons of having a daycare at home. Since I’m a positive person, I’ll start with the pros:
The project is financially viable
This was the very first reason why I reconsider having a daycare at home. Without enough revenue, there was no reason to make all those changes. Since we don’t need the daycare to generate $1,500 a month anymore, we can easily use this income to maintain our lifestyle.
My wife could stay at home
This was definitely an important point. It is not the perfect situation (you’ll see with my second post!), but at least, she will be spending more times with our two children. They won’t have to wake up a 5:30 in the morning and rush to work. Our life would be a lot smoother.
It gives us the opportunity of renovating our basement
In order to be able to offer a quality environment to the other children, we would have to renovate our basement. At the same time, I will put a third bathroom and finish my home theater. Which guy would spit on a brand new room for his home theater? After all, Hockey just started and my Canadiens will surely go far in the playoff this year!
We could use the tax system to help us out
Remember my post on how to use taxes with a company? By shifting my wife income to company income, we will be able to deduct several things and therefore reduce her declared income significantly. She will pay fewer taxes and we will benefit from more government allocations since they are based on our family income.
Even though it is very tempting to put all expenses on the company’s back, it is important that you deal with an accountant for this part. The last thing we want is to do something illegal and have to pay thousand in taxes and charges in a few years! Anyway, you don’t need to go this route to save money on taxes. The government is allowing several type of expenses which are more than enough.
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